Q3 revenue of $25.0M, an
increase of 32% over the same period last year
Q3 YTD revenue of $90.4M, an
increase of 40% over the same period last year
VANCOUVER, BC, Nov. 10,
2022 /CNW/ - East Side Games Group (TSX: EAGR) (OTC:
EAGRF) ("ESGG" or the "Company"), today announced
financial results for the third quarter ended September 30, 2022. All amounts are stated in
Canadian dollars on an IFRS basis unless otherwise indicated.
The launch of Star Trek, in the last few days of Q3, has us
well positioned for Q4 and the end of FY2022. Doctor Who: Lost
in Time will be our next major IP-based title, currently in soft
launch and slated for worldwide launch. We have also soft launched
titles in three new genres, Trailer Park Boys Merge, Bud Farm
Munchie Match and Milk Farm Tycoon, all of which are showing solid
engagement metrics. This will bring our total games launched in
2022 to 11 titles, one more than our goal of 10 titles.
Three of ESGG's top five games launched in the past 12 months.
RuPaul's Drag Race Superstar, The Office: Somehow We Manage, and
Star Trek: Lower Decks - The Badgey Directive. These titles
prove out the product market fit for GameKit, our proprietary
software framework that allows developers to build faster, cheaper,
and with a higher chance of success. It also proves our focus on
IP-driven games is a solid model in a post Ad Tracking Transparency
("ATT") world.
For 2023 we will have a tighter focus on large IP-driven games,
which is where we have found the most success. We will be investing
in our winners as well as betting smart about what is working in
the new market dynamics. We have signed deals for new IPs and games
for next year with NBCUniversal, Creative Artists Agency, Jazwares,
All Elite Wrestling, Diggital Dogg and others. We have also signed
numerous development partnership deals with leading studios all
over the world.
"We anticipate being EBITDA positive for the year while
maintaining year over year growth. We remain focused on our goal of
providing creators the tools to successfully deliver mobile gaming
experiences that engage players every day," said Jason Bailey, CEO of East Side Games Group.
Three and nine months ended
September 30, 2022
Highlights:
- Q3 2022 revenue was $25.0
million, a 32% increase vs Q3 2021 revenue of $19.0 million. For the nine months ended
September 30, 2022, revenue was
$90.4 million, a 40% increase vs the
nine months ended September 30,
2021.
- Cash for the Company at September 30,
2022 was $5.2 million compared
to $9.2 million at December 31, 2021. The Company had $0.8 million in debt. During 2022, the Company
expanded its operating credit facility from $3.5 million to $7.1
million increasing its overall credit facilities to
$17.1 million.
- Daily Active Users in Q3 were 298K (Q3 2021 – 244k) and Monthly Active Users were 1.0M (Q3 2021 – 871k). Average Revenue per Daily Active User was
$0.94 (Q3 2021 - $0.85).
- Q3 2022 Adjusted EBITDA was $(1.0)
million (Q3 2021 - $1.1
million) and year to date Adjusted EBITDA was $2.6 million (YTD 2021 - $6.3 million).
- Q3 2022 net loss was $3.5 million
(Q3 2021 – net loss of $1.4 million)
and year to date net income was $14.4
million (YTD 2021 – net loss of $1.1
million). Net income for the nine months ended September 30, 2022 included a $19.5 million income item for the reversal of the
contingent payment.
- Launched Star Trek Lower Decks and soft launched Doctor Who,
Milk Farm Tycoon, Trailer Park Boys Merge, Bud Farm Munchie Match,
and others.
- On August 11, 2022, the Company
announced its intention to buy back up to 4,076,819 shares under
its NCIB. Through September 30, 2022,
the Company purchased 98,139 shares.
Certain information provided in this news release is extracted
from the consolidated financial statements (the "Financial
Statements") and Management's Discussion & Analysis
("MD&A") of the Company for the three and nine months ended
September 30, 2022 and should be read
in conjunction with them. It is only in the context of the fulsome
information and disclosures contained in the Financial Statements
and MD&A that an investor can properly analyze this
information. The Financial Statements and MD&A can be found
under the Company's profile on SEDAR and EDGAR.
Webcast and Conference Call
Information
The Company will hold a conference call to discuss its
performance with the investment community at 2:00 p.m. PT today. Related earnings release
materials can be found on East Side Games Group website at
https://eastsidegamesgroup.com/investors/financial-information/.
Webcast and Conference Call Details:
Webcast URL:
https://app.webinar.net/vxV0plML4mb
Toll Free Dial-In
Number:
|
+1 (888)
886-7786
|
Local Dial-In
Number:
|
+1 (416)
764-8658
|
Conference
ID:
|
11113306
|
A replay will be available starting at 6:30 a.m. PT November 11,
2022 until December 10, 2022
by dialing +1 (877) 674-7070 or +1 (416) 764-8692 and entering the
conference ID 113306.
ABOUT EAST SIDE GAMES
GROUP
East Side Games Group (formerly operating under the name "LEAF
Mobile Inc.") is a leading free-to-play mobile game group. Through
our proprietary Game Kit software platform, we enable creators to
successfully deliver memorable mobile gaming experiences that
engage players everyday. We publish a diverse portfolio of original
and licensed IP mobile games that include: The Office: Somehow
We Manage, RuPaul's Drag Race Superstar, Star Trek: Lower Decks - The Badgey
Directive, Bud Farm Idle Tycoon, Cheech & Chong Bud Farm, It's Always Sunny: The Gang Goes
Mobile, Trailer Park Boys Greasy Money and other IP based and
wholly owned properties.
Additional information about the Company continues to be
available under its legal name, East Side Games Group Inc., at
www.sedar.com.
Forward-looking
Information
Certain statements in this release are forward-looking
statements, which reflect the expectations of management regarding
the proposed transactions described herein. Forward-looking
statements consist of statements that are not purely historical,
including any statements regarding beliefs, plans, expectations or
intentions regarding the future. Such statements are subject to
risks and uncertainties that may cause actual results, performance
or developments to differ materially from those contained in the
statements. No assurance can be given that any of the events
anticipated by the forward-looking statements will occur or, if
they do occur, what benefits the Company will obtain from them.
These forward-looking statements reflect management's current views
and are based on certain expectations, estimates and assumptions
which may prove to be incorrect. A number of risks and
uncertainties could cause our actual results to differ materially
from those expressed or implied by the forward-looking statements,
including factors beyond the Company's control. These
forward-looking statements are made as of the date of this news
release.
SOURCE Leaf Mobile Inc.